Galen Weston says Loblaw faces `misguided criticism'
Loblaw Cos. Ltd. chairman Galen Weston, as well as the company's new chief executive, pushed back on what they called “misguided criticism” of the grocer as a boycott against the company gains steam online.
“As a well-known company and Canada's largest grocer, it is natural that Loblaw would be singled out as a focal point for media and government and of course consumer frustrations,” said Weston at the grocer's annual meeting on Thursday.
He said though shareholders “may be troubled by these often-repeated stories,” they should be assured that Loblaw will continue to act with integrity.
Chief executive Per Bank said there's a lot of misinformation online about Loblaw, and reiterated the company is not responsible for higher food prices. Inflation is a global issue, he added.
Canadians are under pressure and frustrated, said Bank.
“Let me assure you that in every corner of the business, our colleagues are working hard to reduce costs and do things more efficiently. These efforts enabled us to reinvest savings to offset the impact of price inflation in our stores,” he said, adding that the company's internal measure of food inflation was lower than Canada's grocery inflation index for the past three quarters.
A Reddit page created for Canadians to complain about major grocers, where the talks of a boycott began, had topped 67,000 members as of midday Thursday.
Consumers are frustrated with food prices, which rose by double-digits over just a few years while Canada's biggest grocers reported higher profits.
The boycott is an example of “misguided criticism,” said Weston. He said allegations of profiteering by the grocers are untrue.
The company said Wednesday that it reached out to boycott organizers to set up a meeting with Bank, which an organizer confirmed has been scheduled.